FEEM seminar on “Commitment to Environmental Taxation under R&D Competition”

This week’s FEEM seminar addresses environmental regulation and incentives: do they really allow the adoption of more efficient abatement technologies? In this work, the modelling choice is inspired by the Californian Green Chemistry Initiative and responds to the need to analyze the role of environmental regulation in complex R&D market structures. The main results indicate that the ex ante second best tax may be higher or lower than pollution marginal damage.